Stamp Duty Land Tax Manual

Procedure: Leases that continue after a fixed term - FA03/Sch17A/Para3

The grant of a lease for a fixed term is notifiable (if required) as a lease for that term. If it continues after the fixed term, either as provided for in the lease or by operation of law, it is treated as a lease for a fixed period of one year longer than the original and if it continues after that year, two years longer etc.

When the lease continues after the end of a fixed term a further return, in the form of a letter to Birmingham Stamp Office, should be made within 30 days of the end of the term already notified or an SDLT1 when the lease first becomes notifiable.

Original transaction notified on SDLT1 but no tax due.

Lease continues after end of fixed term

Further return required having recalculated tax due based on a lease one year longer than the original

Letter should contain:

UTRN of the original return

Details of new tax calculation

Self assessment of tax now due

Payment of tax within 30 days of end of term already notified.

Original transaction notified and tax paid.

* Lease continues after end of fixed term
* Further return required having recalculated tax due based on a lease one year longer than the original
* Letter should contain:
* UTRN of the original return
* Details of new tax calculation
* Self assessment of tax now due
* Payment of additional tax (i.e. new tax calculation less tax paid on original notification) within 30 days of end of term already notified.

Original transaction was not notifiable

* Original return not notified as below notification threshold
* Lease continues after end of fixed term
* As a result of the continuation lease becomes notifiable
* SDLT 1 now required, effective date is the date of the original transaction (penalties will not be charged if return is made within 30 days of continuation which results in the requirement to notify), this should be sent to Birmingham Stamp Office not Netherton RDC, accompanied by a letter containing the following details:
* Details of tax calculation
* Self assessment of tax now due
* Payment of any tax now due within 30 days of end of the term that did not previously need to be notified.